How does Staircasing work?
1. Buy more shares
As your savings or equity in your property increases, you can buy a bigger share of your home
2. Reduce your rent
The greater the share you own in your home, the less rent you pay to Peabody
3. Own 100%
When you're ready, you can buy the remaining shares in your home and become the outright owner (paying no rent)
Considerations before Staircasing
It reduces your rent
The more shares you own in your home, the less rent you pay. The formula on this page will help you estimate how much you might save on rent when you Staircase.
Most people will Staircase two or three times before they own 100% of their home, known as final Staircasing. Buying further shares, but not to 100%, is known as Interim Staircasing. There are costs involved every time you Staircase that you need to factor in - you can find these
below.
Home valuation
As the value of your property is likely to have changed over time, one of the key elements to Staircasing is obtaining a RICS valuation to establish how much it is worth today. This will determine how much any new shares in your home will cost.
To give you an idea of your home’s value before getting a formal RICS
valuation, you can use a home property website like Rightmove or Zoopla or ask a local estate agent to give you a free market estimate.
Check affordability
If you’re thinking about Staircasing, you should get in touch with a Mortgage Advisor. They will take time to understand your finances and help to calculate how much you can comfortably afford to Staircase, based on the anticipated value of your home.
Home improvements can impact the value of your home
In addition to the location and size of your home, home improvements may also affect its value. As a general rule, only structural improvements will affect the market value of your home. This
includes extensions and conversions, but not replacement bathrooms, kitchens or flooring.
If you have undertaken any home improvements on the property, you must inform your Surveyor so that they can include these within the valuation report. Please note, the amount spent on home
improvements, may not necessarily increase your property value by the same amount.
Any improvements detailed on your valuation report must include the added value, not the amount paid for the improvement.
Check consent
As per the conditions of your lease, all home improvements must be
approved by Peabody before you start work. If you did not obtain approval from Peabody for any home improvements, the valuer will need to disregard these from the final valuation figure.
The process for Staircasing a Shared Ownership home with Peabody
The Staircasing Enquiry pack includes useful information, forms and contacts for the initial part of your Staircasing journey. In addition to downloading the pack, we recommend that you look at how much similar properties in your area are on the market or have recently sold for. You can do this by visiting websites such as Zoopla and Rightmove or contacting a local Estate Agent who may give you a free estimate of your home’s value.
A Mortgage Advisor will support you to understand your current financial position and whether you are able to comfortably afford to buy more shares in your home.
This will be a free short pre-assessment which can be carried out over the phone and takes around 30 minutes to complete.
Once you are happy to proceed based on your affordability guidance, you will need to instruct an independent RICS registered surveyor to carry out a valuation of your home. The Surveyor will provide a full valuation report of the condition and value of your home.
If you have carried out any home improvements such as an Extension or Conversion and you have obtained Peabody’s consent to do so then you will need to let the surveyor know. The surveyor will then determine the added value and this will be included in your valuation report.
Once you are ready to begin the process, please return all documentation detailed on the checklist below to the Post Sales Team:
• A completed Staircasing Request Form signed by all Leaseholders.
• A copy of your full signed and dated lease.
• A copy of your Register of Title (Land Registry).
• If you have previously bought more shares of your property, a copy of your memorandum of Staircasing(s).
• A valuation from a RICS qualified surveyor.
Once we have received the required documents, your case will be assigned to one of our Post Sales Executives who will be in contact to talk through your next steps and to take payment of your initial admin fee of £220.
Your Post Sales Executive will process your valuation for approval and issue an offer letter to you once approved.
If you are Interim Staircasing & will not own 100% of the property upon completion, you will need to contact the Independent Mortgage Advisor (IMA) who completed your pre-assessment and provide them with details of your home valuation.
The IMA will complete a full financial assessment to understand the maximum additional shares you can buy and send this information to the Post Sales Team to progress to the next stage of the process.
As part of the full financial assessment, you will need to provide documentation prove your income and outgoings such as payslips and bank statements. Further information can be found within the Staircasing Enquiry Pack.
We recommend using an independent solicitor and mortgage advisor who specialise in Shared Ownership. Your mortgage advisor will be able to assist you with your mortgage arrangements to buy the additional shares.
Your solicitor will undertake the legal work on your behalf. They may need to arrange an appointment to go through the legal paperwork with you.
Your valuation is valid for three months and is required to be in date up until you complete the Staircasing transaction.
If you are unable to complete your transaction within this time, you will need to request an extension from your surveyor.
Congratulations! Once your solicitor has completed all the necessary legal work, you will own either a greater share or the full 100% value of your home.
Your solicitor will now register the memorandum of Staircasing with Land Registry and will provide you
with the updated title register. You are advised to keep your copy of the landlord executed memorandum of Staircasing with your lease as proof of your increased ownership.
